MARKETING PLAN OF DAMPALIT FALLS

Prepared by: Rose Anne Cuaderno (FRM 119)

I. EXECUTIVE SUMMARY

Dampalit Falls is a tourist attraction site which provides recreational benefits to the
people. It is located at Barangay Dampalit, Los Banos, Laguna and a part of the Mt. Makiling
Forest Reserve. The falls has been open to public and has been a destination site for vacation
seekers, travelers and nature enthusiast. With its low-cost entrance fee of P20.00 and cottages
that rangers from P100-300, one can truly enjoy its majestic fresh water falls and green
architecture of trees that surrounds it.

The expanse of open space, water falls, and variety of amenities across the community
are just a few of the “quality” elements that encourage every individual and/or families to go and
visit the place.

II. SITUATION ANALYSIS

Dampalit Falls is also called as “Dampang Paliit”, is located in Brgy. Lalakay, Los
Banos, Laguna, and considered as one of the ecotourism site in the area within the Mt. Makiling
Forest Reserve. It has elevation of 400 meters above sea level. The falls is a part of the Molawin-
Dampalit watershed having the most prominent creeks among the four subwatersheds of MFR.

The main falls is quite tall and has a relatively shallow basin that are perfectly good for
younger ages. The falls continues as a series of much shorter albeit wider drops into a maze of
huge rocks that gives additional scenery to the site.

A. THE INTERNAL ENVIRONMENT

Marketing Goals and Objectives

It is a privately-owned site by Mrs. Purita Dumlao and currently open for the public. The
goals of the of the site is to provide sustainable recreational experiences which are imbued with
quality, accountability and wellness for the people, to give a place for them to relax and enjoy
the beautiful scenery of a natural resource and at the same time to provide additional income
benefits for the local community living near the site. Its main objective, as being considered as a

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natural treasure, is to promote the ecotourism of the area both for the conservation strategy and
economic development. In every actions and decisions that pertains to the site, the management
always consider first the sustainability of resources.

The recreation area offers a wide variety of opportunities so that people from all
demographic groups will get to have benefits from the site. The local community of Dampalit is
benefited through serving as the tourist guide of the visitors of the site. They also able to sell
varieties of food and stuff for the visitors since the falls where it is located are distant to the main
road or nearest food store and restaurants.

Current Marketing Strategy and Performance

The Product

Dampalit falls provides recreational service to the people. First of with the trail, it caters
those who are hikers as it gives additional thrill-some activity. One can freely swim into the
water area as it has a clean and freshwater to offer. Also, the place can be a picnic area for the
families and friends.

The Price

An outpost is established near the vicinity of the falls and this is where the charges for the
entrance fee is being paid. Aside from charging the entrance, maintaining the facilities and the
cleanliness of the falls, there are no other services offered. They offer cheap pricing that suits the
budget of the visitors. There is also one price that is set for all ages (young and adults). The place
is open for the public may it be local and international visitors.

The Promotion

However, there are no promotion being done by the management other than the blog
write ups of the visitors who has gone there. The management has no either marketing plan for
the site but still push forward for the sustainable use of it.

Current and Anticipated Organizational Resource

The falls is a privately-owned area by Mrs. Purita Dumlao. There are only few helpers to
whom the owner trust to organize and maintain the site. Currently, there are two families who

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said to be the “tagapagbantay” of the area and they as well are the ones involve in collecting
entrance fees and cottages fees. The helpers have been very accommodating to all the visitors
and always ensure to have a positive relationship towards them.

Due to the few numbers of helpers assisting the site, this circumstance leads to the poor
maintenance of the area. Fortunately, the community people residing near to it has the so called
“malasakit” or care for nature that is why some of them voluntarily help maintain and clean the
area without any pay in return.

Current and Anticipated Cultural and Structural Issues

The management has been very customer-oriented and very open for suggestions of the
visitors. However, due to financial constraints, it is hard for them to embrace changes
considering that it is a natural resource, they always see to it that the sustainability of the place is
not compromise. Moreover, the management has also been very supportive to the local
communities and in their own way of creating income with respect to accommodating the
visitors.

B. THE CUSTOMER ENVIRONMENT

Firm’s current and potential customers

The current customers of the site are the residents of the Los Banos and the tourist
coming mainly from the neighboring provinces or localities. Moreover, the foreign visitors also
tend to visit the place. With increasing popularity, the potential customers are expected to be
coming from urban areas seeking for a new vacation spot.

What do customers do with the firm’s products?

Dampalit falls offers one of the clearest and fresh water of the water wonders of Laguna.
It was recorded in history that the national hero, Rizal, was fond of bathing in this falls and even
compared it superb against the Niagra Falls of America, thus have a historic value for that
matter.

With a small entrance fee of P20.00, one can enjoy this spectacular wonder of Laguna.
The use of cottages range from P100-P300 depending on the size of the group.

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 However, with the over-exploitation and used of the falls, it comes with the threat of
deterioration and decrease of the volume of free-flowing water from the Makiling basin. This
comes with the responsibility of the visitors to use it properly and be a part of cleanliness of the
area.

Where do customers purchase the firm’s products?

Dampalit falls is located at Barangay Dampalit, Los Banos, Laguna. From the main road
of Lalakay, there is an estimated 30-minute walk to the falls. There are no transportation means
such as tricycle/pedicab/habal-habal being offered going to the falls.

When do customers purchase the firm’s products?

The peak season of the falls are the summer months of March to August. During summer,
there is an estimate of 50 visitors per day. Meanwhile, during the regular months, about 5-20
people visit the falls.

Why and how do customers select the firm’s products?

Due to comparably low cost of entrance fee, tourists prefer the falls over the other water-
recreational places such as the numerous resort in Pansol. In spite of the distance of the trail to
the falls, tourist still come over and even take this as thrill-some and challenging activity
especially to hikers or adventurers.

Why do potential customers not purchase the firm’s products?

The reason for this is the declining quality of the falls and the concurrent improvement of
the neighboring resorts. Also, the possible reason is that there is no much publicity of the
Dampalit Falls, many people do not know about it and sometimes even the local communities
itself.

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C. THE EXTERNAL ENVIRONMENT

Competition

a. Presence of other Water Falls

Laguna is a paradise of fresh water bodies that includes lakes, ponds, hotsprings and
ofcourse the falls. The foot of Mount Makiling is known to host varieties of these water
creations. With this, Dampalit falls has many other competing falls including Buntot Palos in
Pangil, Bukal and Taytay in Majayjay, Cavinti, Sampaloc, Batya-batya etc.

b. Presence of Public and Private Resorts along Pansol

Pansol, Laguna was tagged as the Hotspring Resorts of the Philippines. The place has
numerous public and private resorts that are really a hotspot for tourist. Aside from this, it is
nearer from Manila and is much accessible for vacation seekers. Such resorts have a firm
promotional strategy and is really manage well by the investors. Moreover, the resorts offer a 24-
hour services and rooms which make it more appealing for the customers who come from far and
distance places.

III. SWOT ANALYSIS

A Strengths, Weakness, Opportunities and Threats (SWOT Analysis) was conducted in

order to identify the opportunities and challenges that Dampalit Falls faces over the next few
years with consideration to its internal and external environment.

A. STRENGTHS

a. Recreational experience from a natural resource

The site allows the visitors to experience the beauty of a natural resource. This helps the
people to appreciate nature and see the majestic falls and green vegetation that surrounds it. This
also gives a calming and relaxing experience.

b. Low-cost tourist spot

The site attracts the visitors from going there because of its low-cost entrance fee and
cottages it offers. There are no much financial constraints especially for people that are out-of-
the-budget but want to experience vacation.
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c. Positive relationship with the community

Since the site is located inside a community, the management ensures that they have a
positive relation with respect to the local people. This is also through providing them additional
income and giving them the freedom to sell food to the visitors.

d. Positive relationship with the customer

The management ensures that they have bringing positive vibes to the visitors. They see
to it that the helpers are accommodating and kind to the customers. They make them feel that the
place is a home for them.

e. Pharmaceutical benefits

Aside from the fact that the falls brings calming and relaxing vibes to the visitors, one
can truly enjoy and experience the falls which said to have therapeutic benefits. The water
coming from the forest itself is assured to not only clean and fresh but also has therapeutic effect
as claimed by many.

B. WEAKNESSES

a. Lack of Marketing Direction

The management of the site lacks an overall marketing direction on how they will
beautify and promote the site. There is no formal plan that would allow the management to
streamline efforts and maximize the results.

b. Weak commitment from the local government

Since it is a privately-owned site, the management has a weak relationship towards the
local government. This is very evident because there is also no promotion about the Dampalit
falls in the official websites of the province of Laguna. In addition, the management has also few
appearances and support to the various activities of the local municipalities and provincial
government.

c. Lack of Social Media Promotion

Nowadays, social media plays a big role in influencing the people. The lack of Dampalit
Falls’ proper social media promotion such as having an official website, facebook page or any
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other portals that social media can offer cause the falls to become unintroduced to the public. We
now know that it is a click away to have the people’s awareness.

d. Limited Budget for improvements

The management has a very limited budget for the site. The income from the entrance fee
goes to the monthly payment for the helpers and few of it will just be for the maintenance and
cleaning cost of the site for that matter.

C. OPPORTUNITIES

a. Advent of Social Media

The Social media would really help promote the site. For example, the visitors who had
already been to the falls would share their experience on social media platforms that in turn will
increase the publicity of the falls.

b. Website Development

The falls would have the opportunity to become popular if only it has an official website
to which the visitors can see easily all the requirements needed when going there such as the
directions (from manila), fees, safety kit etc. and what the visitors to expect from the site.

c. Improvement of the establishment of concrete pavement to the site

This allow the visitors to easily access the site. A walk with your families and friends
would now be easy and fun.

d. Partnership with public and private government or other concern groups

With this, the falls would be easily promoted. They can seek as well financial supports
towards the restoration or maintenance of the site. The public and private government as well can
help conduct activities towards the sustainable use and care for our mother nature through fun
run activities etc.

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D. THREATS

a. Deterioration of the site

Since it is a natural resource, it has a big potential for deterioration especially if the
visitors would not properly utilize it.

b. Climate Change

Climate change causes fluctuation in the weather pattern. It may bring unexpected
changes in the season, both dry and wet. For instance, the falls will be highly affected by
extended period of dry season or drought.

c. Competing resorts

The existence of public and private resorts is a threat for the falls since it offers a twenty-
four-hour service and the facilities are well-equipped. The water does not much differ in the
falls since the water they are using in the resorts are mostly came from the Mount Makiling
forest as well.

E. THE SWOT MATRIX

WEAKNESSES
STRENGTHS Lack of marketing direction
Recreational experience from a natural Weak commintment from the local
resource government
Low-cost tourist spot Lack of social media promotion
Positive relationship with the commnity Limited budget for improvements
Positive relationship with the visitors
Pharmaceutical benefits SWOT
OPPORTUNITIES
Advent of social media
ANALYSIS
THREATS
Website development
Deterioration of the site
Improvement of the establishment of
concrete pavement to the site Climate change
Partnership with private and public Competing resorts
governments or other concern groups

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F. DEVELOPING COMPETITIVE ADVANTAGES

Laguna has varieties of waterfalls to offer but in terms of the distance, the Dampalit falls
has a nearer distance from Manila area which make it more accessible to go to. The hidden
wonder of Dampalit falls offers an extreme nature adventure to the people, not just the
swimming activity that you can do, but also one get to experience the lush, green surroundings
for picnic areas.

The advantage of it in terms of prices, the fall is very cost-friendly. For a P20.00, one will
experience a “quality” vacation with their families and friends. The price of cottages varied
depending on the size of groups who will use it. Luckily, since the helpers are the one who
ultimately manage it, they sometimes offer discount especially for the local residents.

Since the place is a natural resource, the weak popularity of the area prevents it from
deterioration. Few people are fine for them so that the sacred of the falls will be maintained.
Also, those competing resorts serve as a motivation for them to do better in the maintenance and
beautification of the falls in a natural and conserving way.

G. DEVELOPING A STRATEGIC FOCUS

The managements strategic focus is through positioning or designing the falls offering
and image to occupy a distinctive place in the mind of the customer. The quiet, simple greenery
and beauty of the falls make the people visits it over and over again.

With this concept, the management has a product leader qualities in terms of nature-
tripping services it provides. The distinguish form as well that it has compared to the commercial
resorts is that it has a fall which not only majestically amazing but said to have a therapeutic
benefit for people. The management can also be operationally excellent having an
accommodating and kind helpers who really value and care for the visitors. Aside from this, the
welcoming vibes and helpful deeds of the residents of Dampalit make it more vacation-friendly.
Lastly and as said, it is customer-intimate through the way the safety of the visitors is always the
priority and they cater the needs of the visitors in many possible ways.

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IV. MARKETING GOALS AND OBJECTIVES

A. MARKETING GOAL A: To promote the falls as a budget-friendly destination through the

use of brochures/ leafltes and signages

Objective1: To attract and target new customers

Objective2: To increase the sales of the Dampalit Falls

B. MARKETING GOAL B: To coordinate with LGU’s and/or private sector for the betterment
of the falls

Objective1: Improve external relationships

Objective2: Build brand awareness (LGU’s will help promote Dampalit Falls as one of their best
tourist destination to go to, this can be done thru including it in their Laguna’s official websites)

V. MARKETING STRATEGY

A. TARGET MARKET

Primary Target Market

The primary target market of the attraction site are the people from neighboring
provinces, Manila and of course the foreigners.

Secondary Target Market

The secondary target market are the residents of the municipalities of Los Banos and the
province of Laguna as a whole.

B. PRODUCT STRATEGY

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 The Dampalit Falls Spa and Resort will be a leading water recreational tourist spot that
caters visitors of all ages.

C. PRICING STRATEGY

The pricing strategy would be based from the pricing objectives which are as follows:

a. Survival- the payment for the site will be allotted for the enhancement of the facilities and
regular maintenance of the area

b. Profit- The profit would help also give income to the helpers and incentives to the responsible
residents of the community

c. Service Quality- The budget would help increase the number of services that the area will
offer aside from being a swimming and picnic site.

With this pricing objectives, several pricing strategies can be applied:

a. Penetration Pricing- Setting the price low will discourage the other water-based recreational
sites to compete with the Dampalit falls and will appeal to a larger market segment. The price of
P20.00 will be maintained for the regular visitors coming from the neighboring localities, but we
can set the entrance fee of the falls up to P50.00 for the foreign visitors. The increase in the fees
would help the management to increase the quality of its services.

b. Variable Pricing. The price can be negotiated in terms of the categorization in ages. The prices
for children can be lowered up to P10.00-P15.00. Also, discount can be given for the residents of
the Dampalit community as well who want to enjoy the falls.

D. INTERGRATED MARKETING COMMUNICATION (PROMOTION STRATEGY)

The promotion strategy are as follows:

a. Discounts- giving discounts for young ages and residents of Dampalit. Also, discounts for
large group of people would be given.

b. Fun run and Contest- This would not only advertise the site but also create an environmental
awareness. Fun run would help raise love and care for nature while contest such as
photojournalism and another art-making contest would help appreciate the tourist site.

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c. Social Media- These social media platforms such as Facebook, Google, Instagram, Twitter etc.
is a way of promoting services in a more relaxed way. This would also help see the management
as in touch with people.

d. Giving business cards, brochures and leaflets- Through this, the recreational site will be
introduced and the interested visitors will have an easy contact or communication with the
Dampalit falls management.

VI. MARKETING IMPLEMENTATION

A. STRUCTURAL ISSUES

To make all of this plan into success, the management should be very focus in
implementing this. They should have an allotted budget for the brochures/leaflets as well as
construction of signages in the main road going to the Dampalit trail. With this, they can atleast
pay the residents to spread the leaflets and hire workers who will put the signages. To avoid
higher cost, the management can coordinate with the local municipalities or seek sponsorship
with private sectors for that matter.

B. FINANCIALS

Cost-benefit analysis was conducted in order to assess if the marketing plan is feasible or
worth it to be implemented.

Table 1. Cost-benefit Analysis of the Dampalit Falls’ Marketing Strategy

Discount Factor 0.06          

Year 0 1 2 3 4 5
Income from entrance fee 0 168000 168000 336000 336000 336000
Income from cottages fee 0 100800 100800 201600 201600 201600
Residual from capital 0 0 0 0 0 30000
Total Benefits 0 268800 268800 537600 537600 567600
O&M Costs 0 264000 264000 300000 300000 300000
Promotion Cost 50000 30000 30000 10000 10000 10000
Cost of Capital 100000 50000 50000 50000 50000 50000
Total Costs 150000 344000 344000 360000 360000 360000
Net Benefits -150000 -75200 -75200 177600 177600 207600
0.94339 0.88999 0.83961 0.74725
Discount Factors 1 6 6 9 0.792093663 8
Present Value of Future - - 149116. 155130.
Benefits -150000 70943.4 66927.7 4 140675.8346 8
             

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         NPV ₱157,051.89  
        BCR 1.095932006  
₱1,794,168.5
        PVB 7  
₱1,637,116.6
        PVC 8  

The cost included are the operational and maintenance cost which covers the summation
of monthly payment for the two helpers, cost for maintenance tools and cleaning stuff. The
promotional cost is also computed and assumed to be the total cost that will be incurred for a
year-round promotion of the site (this includes the brochure, leaflets, signages etc.).

The benefits included in the computation are the annual profit that can be get from
visitors’ payment for the entrance fee and cottages. Note that starting from the year 3, it was
assumed that the number of customers will increase or atleast double, same with the total amount
earned for the cottages. Along with this increase is the decrease of the amount allotted for
promotion since it was assumed that from year 3, many people will already know the site with
the power of word-of-mouth.

Moreover, this is calculated with discount factor of .06. The computed Net Present Value
(NPV) is positive amounting to P157,051.89 while the computed Benefit-Cost Ratio is 1.10
which is greater than the 1 value. This computed values based on projections would lead to a
resulting decision that it is safe to implement the marketing plan for the Dampalit Falls.

VII. EVALUATION AND CONTROL

The quantity and quality aspect evaluation should be implemented as well. In quantity
aspects, there should have the records the customer, number of visitors who came to visit and the
total income it gathered in a certain period of time (eg. Monthly). In the qualitative aspect, it
includes the customer satisfaction and staff performance evaluation. Having this evaluation will
help identify the reason for loss and gain of the management and allows the strategic plan be
changed for further improvements and future success.

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